An independent journal about the Gannett Co. and the news industry's digital transition

Tuesday, January 20, 2009

Pay to play: Dickey, 'sharing the financial hardship'

A top Gannettexecutive is competing as an amateur in this week's Bob Hope Chrysler Classic, held at golf courses including Palmer Private at PGA West, above, near ritzy Palm Springs, Calif. Amateurs pay up to $25,000 to play the event with a PGA professional.

Last Friday, Gannett newspaper division chief Bob Dickey (left) traveled to Arizona to deliver bad news to dozens of employees. Citing the "difficult economy," he said the nation's No. 1 newspaper publisher planned to shutter the Tucson Citizen, the state's oldest continuously published daily, unless a new owner is found by late March.

Gannett has owned the afternoon Citizen since 1977. It is the weaker paper in a joint operating agreement with Lee Enterprises. The two split profits 50-50, so the Citizen is worth as much dead as alive -- maybe more, in the likely event GCI sacks the 80 or so newsroom employees. "We deeply regret having to take this step," Dickey said.

I will now tell you how one of Gannett's highest-paid executives -- and one of its most enthusiastic golfers -- is sharing that hardship.

Dickey is in Palm Springs, the Southern California winter resort where the company is spending a bundle this week on one of pro golf's biggest corporate schmooze-fests: the Bob Hope Chrysler Classic pro-am tournament, starting tomorrow. With much of the nation shivering, this desert oasis made famous by Hollywood royalty is looking forward to mid-70s temperatures today.

In fact, Dickey is competing in the event itself, as an amateur -- something he's done for years. Amateurs pay one of two entry fees, $12,000 or $25,000, to play with a PGA professional and two other amateurs, according to Dawn Suggs, the event's administration director. The higher fee pays for a "goody bag" of gifts. Local charities benefit. All the contestants are men.

Meet your pro: BubbaNeedless to say, amateurs paying these big bucks pray for a brand-name pro in the random drawing, perfect for name-dropping back home at the clubhouse. Dickey's team is to start at 10:36 a.m. Wednesday, at the Palmer Private course at PGA West -- a planned golf community 23 miles southeast of Palm Springs, in La Quinta. Dickey's pro the first day is Bubba Watson, 30 (above), a native of Bagdad, Fla.

Gannett's Hope Classic gambit could be the world's best investment -- if it boosts advertising sales. But the sybaritic spending, less than a week after furloughs and the Citizen threat, once more underscores the growing divide between the haves and have-nots, as Gannett Tower executives lay off thousands in one of the worst economies since the Great Depression.

I do not know Gannett's policy on paying tournament entry fees. The company last year stopped paying "club membership fees," the most recent shareholders proxy report says. But that appears to apply just to membership expenses.

I asked company spokeswoman Tara Connell whether Gannett paid Dickey's entry fee. I also asked whether he is taking this week as his furlough; whether he used the corporate jet for his travel; how much Gannett budgeted for the Hope Classic, and which executives are attending during the week. Finally, I also asked for the name of the individual who authorized any tournament spending. I left messages for Dickey and for Desert Sun Publisher Richard Ramhoff, too. (Updated:Connell has responded.)

At least two other Gannett executives are joining Dickey, I've been told: Des Moines Register Publisher Laura Hollingsworth, whose paper eliminated nearly 9% of 800 jobs last month; she also runs the West region of papers, which includes the Palm Springs daily. Also: Michelle Krans, the division's chief strategist; she'd previously been Sun publisher. Dickey promoted both women in a top-level management shake-up last June. I was not told how long Hollingsworth and Krans are staying.

There's more: Hotels, car rentals, restaurant and bar tabs would add to Gannett's bill for any client entertainment. There are fancy parties from one end of the Coachella Valley to the next. Plus, valley merchants are only too happy to oblige: "Prepare to be pampered by dedicated attendants, raptured by feelings of escape and transformation,'' says the Riviera Resort and Spa in Palm Springs, where one-bedroom suites run as high as $1,380 per night. (The 50-year-old Riviera reopened in October after a $70 million renovation. In its heyday, the 24-acre resort says, it was a playground for the Rat Pack's Frank Sinatra, Sammy Davis Jr., and Dean Martin).

Dickey knows this area well. He was publisher of the Desert Sun in the early 1990s, after joining Gannett in 1989 at the Reno Gazette-Journal. He has been president of Gannett's biggest and most troubled unit, the newspaper division, for nearly a year. Dickey succeeded Sue Clark-Johnson, who was paid $3 million in 2007, including a $480,000 bonus, the company's most recent proxy report to stockholders shows. Gannett will disclose Dickey's annual compensation in the next proxy report, this spring.

Rancho Mirage charityHosted by five-time winner Arnold Palmer (left), this is the 50th Hope Classic. (Bob Hope himself died in 2003.) The tournament is based in nearby La Quinta, one of the jewels on a necklace of exclusive communities southeast of Palm Springs, in the surrounding Coachella Valley. One of the better known is Rancho Mirage, home to Eisenhower Medical Center, and the Betty Ford Center for drug addiction.

Dickey is on one of 128 teams comprising a PGA pro and three amateurs, often seen in the event's signature powder-blue sweaters. He'll play four consecutive days, starting Wednesday. The tournament ends Sunday, when the pros compete for a seven-figure check, a 2009 Chrysler 300C automobile, and crystal trophy. Players got assigned to teams at a drawing Friday night at the Renaissance Esmerelda Resort and Spa in nearby Indian Wells.

The tournament is one of the valley's biggest annual social and charity events. Friday, organizers distributed $1.8 million to Eisenhower hospital and 37 other local charities. Sunday evening, there was a formal ball at the Esmeralda. (The spa there charges $219 for a 50-minute massage in a private room "adorned with rose petals.")

The Hope Classic also reflects the area's frozen-in-time feel. Organizers still elect three beauty queens, the Classic Girls (last year's, left, with singer Michael Bolton). The media guide lists "contestant wives' activities," such as a fashion show and luncheon today.

Plus, celebrities in attendance aren't exactly A-listers: This year, they include 1970s rocker Alice Cooper; former Vice President Dan Quayle, and "timeless" New York Yankees baseball legend Yogi Berra.

Outside of possibly using the corporate jet and Gannett paying the entry fee; why is this an issue? I agree with about 98% of the topics on this site, but this is a little off base. Also, the corporate sponsorship for the greenside tent is a form of advertising. Gannett/ AZ Republic usually have one at The FBR Open in Scottsdale as well.

Let me guess. He's doing it in the name of charity of "giving back" like our new president I guess is calling us to do. Problem I see with that is as long as these companies continue top-heavy spending and outsourcing work, the rest of us will be forced to "give back" by working in a government make-work jobs program.

I hope this is not coming out of the Gannett expense account. Not after I have had employees in my office crying about how they are going to lose $500 of their weekly wages because of the furlough and they will not be able to afford their rent and utility bills.

The posters who see no problem with this are either obfuscating or accept such perks themselves. In times of economic distress, companies should "pull in the edges," both to save money and to avoid the negative appearance of spending while reporters are losing their jobs. This is simply inexcusable, despite the feeble attempts to make this a non-issue.

Congrats, Jim. You used your considerable skills to learn that a rich guy plays golf. Wow. And you hint at tons to stuff. With no facts. Who paid the fee? Dunno. Which fee? Dunno. Corporate tent fee? Dunno. Did he take the jet? Dunno. Does this trip, by the execs, have the chance to bring in some much needed ad $$? Dunno. Do you know anything? Dunno.

But you are quick to bash the "haves," in favor of the have nots. What I want to know is this: How does a guy who slaved away in - where was it? - Brazil and Spain in recent months, and lives in ever-so-expensive San Francisco, get away with telling us he only needs $24,000 to live? Who are you kidding? None of the have-nots you stand up for could do it. You certainly appear to be a "have." Some of us are offended as much by country hopping as we are by golf. And unlike the international jaunts and San Fran lifestyle, at least the golf might help the company. Ok, now tell us how poor you really are.

It's important to get the facts first, then comment about it. If you don't know wait until you do. To incite resentment by make insinuations is just wrong in my book. Maybe I hold myself to a higher standard.

Yeah right.Adjust those mileage reimbursement rates every month to save pennies and essentially steal from workers who have to drive, but keep spending tons for the benefit of the leaders who don't seem to realize this company is in serious trouble.

1:43's tirade is so very typical of the stories I read in the Gannett papers. A lot of them miss the point completely because of the kind of flawed logic in 1:43's post. Sad thing is, there used to be editors who would catch the big gaping story holes before readers got to read them.

Dickey and his friends who made these comments should have made full disclosure and had identified themselves as such. I'm a former rank and filer myself, and I'm continually amazed at the double standard these guys keep when it comes comparing how their own reporters are asked cover governments and businesses, and how Gannett executives feel they should be covered.

If Raytheon, a large employer in Tuscon had just laid off 80 people from one of its divisions, and then someone found out that the Director of that business was off to Palm Springs to play in a golf tournament, would that be news?

Dickey is above everyone else... that's what this is about.

Years ago, when we had on-site visits, our "advance team" had to go to the hotel and inspect every room even making sure that the toilets worked. Royalty was coming to town.

If he makes $3M a year like Mary, I sure hope he's using his own money. I'm afraid that Gannett gets the whole tab.

I think this is clearly a leadership issue regardless of your position on the company. At a time when the company is asking employees to go without pay and readers and advertisers to deal with less of a product, this doesn't show good judgment. Just because you can, doesn't mean you should. Period.

"I think this is clearly a leadership issue regardless of your position on the company."

It's been made painfully clear over the past three years that there is absolutely no leadership from McLean. The upper echelons of this company are encrusted with cronyism and lack of accountability, and have been for decades. Why pretend that it's an issue now?

Everyone must understand that expensive perks are necessary to retain the company's highly qualified and sought-after leadership. If we don't reward them richly, they'll be snapped up by companies such as ... well, there's, uh, firms like, you know....Sheesh. Why would any other company want to hire ANY Gannett exec? Let's cut their pay by 75 percent today, get rid of the private planes, lush offices and other perks. If they can find another company that wants them at their present bloated salaries, then bless them. Otherwise, Gannett will instantly trim millions in expenses with no negative impact on its products. And the top-down approach will show that the company is really serious about cost control.Ahhhh....a man can dream.

Bob Dickey's entry fee into the BHCC tournament is negotiated as part of The Desert Sun's overall sponsorship agreement with the tournament. It's been done for YEARS. The tournament receives daily pairings, a tab, online banners, ROP etc. Call Desert Sun Marketing Director Greg Castro or Ad Director Dominique Shwe and request to see a copy of the agreement. It's all there...

(singing>)It's called Jumping... to conclusions. Always assume the worst case scenario, even if there are no indications to prove any wrongdoing. That's what we do, it's called

journalism

That's right, now that we have less money than before, we're gonna start pointing fingers at people whose lives are better than us. You say the only way to get the job as an executive done is to sit in the offices in Virginia.

journalism

The best way to wrote your story is to speculate on how things happen. You say tournament suite, why not suggest it was paid for in cash, even though it's not the industry standard.

journalism

Or maybe in a newer story, when discussing the cost of a night's stay at a resort, always list only the option with the highest price tag.

journalism

If you see someone doing an activity outside of the office, he better be on furlough. Because, you know that the only way for clients to trust the stability in a company is for a major executive to pull out of a high-profile event he's played in for years. That inspires

confidence

And if this event is across the country, make it appear as though flying via corporate jet is the only solution. Of course, even though the day-to-day whereabouts of this plane are normally unknown, and may even be used at this moment for a completely useless task somewhere else, it's just easier to get the reader fired up if you paint the most controversial picture.(/singing)

Anon 3:02, I don't know about checking hotel toilets in advance of site visits from corporate, but old-timers in Springfield claim that Kate Marymont, in her younger days, changed out lightbulbs to higher wattage ones in hotel rooms reserved for corporate royalty. Look where it got her!

I don't understand why anyone is outraged by any of this - this is par for the course (ouch!) when it comes to corporate media.

You folks in the newsrooms have no idea what kind of perks are given to key advertisers, ad execs and publishers! Skybox seats are the norm in this company! From the big metros down to the little community dailies.

They all spend a fortune on "bonus" perks for big shots.

Why is anyone surprised by this??? This is the norm at Gannett, and other newspaper corporations, as well.

It amounts to MILLIONS not being paid for salaies, benefits or new equipment at newspapers.

Special tickets, seats, trips, you name it.

Why is ANY Gannett employee outraged by the painfully obvious??? It has been going on for years....

Laura Hollingsworth is going on the golf outing????? She is Gannett corporate through and through -clearly the reason she was asked.

I can't help myself from some negative comments about her - LH is very nice as long as you agree with her & DO EXACTLY WHAT SHE TELLS YOU TO DO. Disagree or question a command and she is a soldier/militant/heartless/little tiny stone statue-like creature. A smart and also very very pathetic being that I sometimes wonder if she's actually a living, breathing HUMAN being. I can only guess what is deteriorating inside her body from the awful, mean-spirited, controlled, life-Less, rigid, and not very nice life she leads. I could really say some mean things about her because of all the PAIN she personally causes. AND there is no need to cause so much pain if you have any compassion or soul or spirit. Her communication skills are 2nd to none in the pain inducing area. She is sadsadsadsadsadsad and sadder every day as a person. I want to wish her luck but can't bring myself to do that right now; but I know that what goes around comes around and I wouldn't want to be her when that happens.

If Bob paid for this out of his own pocket, it is really not anyone's business. Each person has the right to spend their income however they choose. It seems that everyone on this blog spends time criticizing others instead of focusing on how to make a difference in our industry.

who here can afford to pay $25,000 for a round of golf? Good for you if you can. But if you can, you should not be laying off employees.

That's the point.

--- so, what's the point in being successful if you can only partake in the things you enjoy in positive economic times? you think this is a big expense? his successor made $3 mil a year -- you think she didn't ever plunk $25k down on unnecessary items? and, we're still assuming he paid the $25k rather than $12k. REALITY CHECK: Rich people blow money on stuff most people would scoff at.

Jim Hopkins said...

USA Today Publisher Craig Moon likes to play golf; is he at the Hope Classic?

--- dickie has been playing the tournament for years. again, as stated earlier, wouldn't pulling out potentially have a negative impact on the perception of our company? there are major companies at this event, isn't it in Gannett's best interest to appear that things are business as usual, if at all possible? perception is vital in our industry - some might say controlling it is priceless. how is this any different than lunch or golf with a sales rep - just on a bigger scale?

Singing 5:20 p.m.: How is Bob Dickey doing his job by playing a $25,000 round of golf? That's asinine.

Corporate lackey 5:20 p.m.: It doesn't matter if this is just "part of the deal," or if it's been done for years and years. This is a different world now, people. Gannett is in the shitter, and Dickey and his ilk still go off on their paid junkets. Fuck them.

Here's a thought. If Gannett is being FORCED to use that tournament slot, use it in a good way. Find a low-income kid from an poverty-stricken school district in a community served by a Gannett paper who dreams of playing golf, but whose family doesn't have the resources to help him, and whose community has no cheap golf course nearby. Donate the playing slot and pro mentoring to that kid. Goodwill galore. I bet the decimated sports departments at GCI's papers could find such a kid in a heartbeat.

Something to consider from the Gannett Ethics Policy; this is from the conflicts of interest section. Also, here's the link to the page: http://tinyurl.com/8jmhpt

A “conflict of interest” exists when a person’s private interest interferes in any way with the interests of the Company. A conflict situation can arise when a director, officer or employee takes actions or has interests that may make it difficult to perform his or her Company work objectively and effectively. Conflicts of interest also arise when a director, officer or employee, or members of his or her family, receives improper personal benefits as a result of his or her position with the Company.

Appearance of Impropriety: Directors, officers and employees should take care to avoid any appearance of impropriety and will disclose to their supervisors or, in the case of directors and executive officers, to the Board of Directors, any material transaction or relationship that reasonably could be expected to give rise to a conflict of interest.

7:25 pm: Exactly! I've been making the same argument about the Gannett Management Committee perq, allowing Dubow, Dickey and others to earmark Gannett Foundation money for their alma maters, spouse's community project, etc.

That group controlled $320,000 of Gannett Foundation grant money in 2007 -- the most recent year available. I still don't understand the value to shareholders in allowing this perq.

But, I've also said that the least these execs could do -- the decent thing, especially now -- would be to look for more ways to help employees, ex-employees and the communities that are now about to lose their newspapers.

We bought their papers, and now we are junking their presses and retreating from some of our most basic First Amendment responsibilities.

Defending Gannett's spending on the golf tournament, 7:14 wrote: "There are major companies at this event, isn't it in Gannett's best interest to appear that things are business as usual, if at all possible? perception is vital in our industry - some might say controlling it is priceless."

You have it turned upside down. It is in Gannett's best interest to show the world that things are NOT business as usual. To do otherwise signals that management doesn't get it.

With the writer's permission, I'm now posting an edited version of their comment:

Anonymous said...

Let me take another crack at 1:43:

Listen, dumbass. The issue is not that Dickey is golfing in ritzy [ or "swank" ] Palm Springs. It's whether he used company funds to do so at a time of furloughs and layoffs.

Secondly, if company funds were used, how can this be construed as a business expense. The tertiary (look it up...) issue is whether the head of the newspaper division is using good judgment to pursue such junkets during this time.

Unlike you, I'm not "offended" by the actions of others unless they directly impact myself or my family. I'm not schlepping around waiting to be offended. Apparently, you are. Schmuck.

Way to go, Jim! Gawker picked up your story about Dickey's magical Gannett-sponsored golf tourney. Hooray for even more Gannett blog readers! I hope Dickey is shunned by the cool guys on the green. That entry fee could have paid my salary for another year, but I suppose golf is more important than the careers and livelihood of young writers, not to mention the quality of his failing newspapers...

6:41. LH a monster.. Great she is in Salem Oregon today. Yep she is leaving suuny Palm Springs to experience 30 degreee weather and to critize and tear apart our Ad Dept. I doubt she is spending the night and I bet she did not take a commercial flight as we do not have a commercial airport. Great we will avoid her at all costs today.

Did anyone else catch that Dickey and the Gang were out in Palm Springs for "meetings" of the regional team? I know Dickey, Krans and Hollingsworth were at The Desert Sun, and did have some meetings. But now we also know that Dickey was out west to play golf. I've heard Krans is on the board of the Palm Springs International Film Festival, which was going on just before the golf tournament. So at best it was a very conveniently scheduled meeting, on the company dime, at a time when we're all being asked to take a week off without pay, and the folks in Tucson are getting shut down. The suits ought to be ashamed.

Responding to my own post of a minute ago ... yep, sho' 'nuff, Krans is on the Palm Springs International Film Festival board of directors, and timed HER apparently company-bought trip out west to coincide with the film fest:

http://www.psfilmfest.org/society/about/board.aspx

Say one thing for Dickey and Krans -- they're good multi-taskers.

1. Announce furlough2. Go to Tucson, announce imminent closure of newspaper operating since 18703. Go to Palm Springs, tell workers there "we're all in this together."4. Go to swank film festival after-parties with the stars and the rich.5. Golf with the big boys!

Jim says: "Proceed with caution; this is a free-for-all comment zone. I try to correct or clarify incorrect information. But I can't catch everything. Please keep your posts focused on Gannett and media-related subjects. Note that I occasionally review comments in advance, to reject inappropriate ones. And I ignore hostile posters, and recommend you do, too."